Business Environment Report: Sainsbury's Macro and Micro Environment

This report provides a comprehensive analysis of Sainsbury's business environment, examining its organizational structure, the interrelationships of its various functions, and the impact of both macro and micro environmental factors. The report begins with an introduction to the business environment and its influence on Sainsbury, a major UK supermarket chain. It then delves into the different types, sizes, and scopes of organizations, focusing on Sainsbury's operations and the impact of Brexit on its cost structure and sales. The report further explores the interrelationship of various business functions and how they link to the organizational structure, highlighting Sainsbury's customer-centric approach and human resource management practices. A key aspect of the report is its demonstration of the positive and negative influences of the macro environment, using PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors. The report also considers the micro environment, including internal strengths and weaknesses, and their interplay with external macro factors. The report concludes with an overview of the challenges and opportunities facing Sainsbury in its operating environment.

Business
and
business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1: The different type, size and scope of organisation...........................................................1
TASK 2 : Interrelationship of the various functions within an organisation and how they link to
organisational structure....................................................................................................................5
TASK 3............................................................................................................................................7
Demonstrate both the negative and positive influence and impact the macro environment on
the business operations...........................................................................................................7
TASK 4............................................................................................................................................9
Micro environment...............................................................................................................9
The internal strength and weakness of specific business and their interrelationship with
external macro factors..........................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Business environment is a total sum of all the internal and external factors which influence
the business. This both the factors work together and influence each other’s to affect the
operations of the business. Sainsbury is the second largest supermarkets chain in UK at the time
of Brexit. Sainsbury become the largest retailer which early adapt the self-service of retailing in
UK. This report will include the different types of size and scope of the organisation which
impact the cost price which remain uncertain and the interrelationship of the various functions
within the organisation and link the structure of the company. It also highlighted and
demonstrate the negative and positive influence and impact the macro environment factors for
the business operations. The above descriptions and micro environment which interrelated with
the macro environment through the strength and weakness (Bompa, Di Pasquale and
Cornacchia, 2018.).
TASK 1: The different type, size and scope of organisation.
Because of Brexit Sainsbury has warned of the impact of cost pressure, pound will remain uncertain
a slight fall sale same how is in supermarkets.
Sainsbury fall 0.5% in like supermarkets sales; it is down from a rise of 0.1% in the previous quarter.
At the moment market remains very competitive and the impact of cost price remain uncertain.
Because of the week pound, the group of Sainsbury was working hard with suppliers to keep prices
down.
Example between Sainsbury and Argos affected by post Brexit:
Sainsbury Argos
-Consumers income is still growing
-Still in an uncertain phase
-matching the 0.1% saving sales over the
Christmas period
 Enjoyed strong sales of phones,
video games, in the last quarter over
Christmas period
 Up to 41 present with another 25
concession planed for the next
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-gift and general machinery down by 0.4%
-the company Argos decided to put 250 outlets
into Sainsbury stores over the next three years.
quarter
Sainsbury because of Brexit has warned about fresh food could be left rotting, will be strict customers
control.
The COE profit from Sainsbury will be down by 10% because of the 5 forces :
-rivalry
-customer beginning power
-substitute
-supplier
-new entrance.
The retailer will increase after Brexit general prices and import will increase.
The different type of scopes and organisation in business are:
-sole trader: this is a person who can have own business you don’t need work paper and you can make
decision rapid and wright for your business.
-partnership: in this organisation can be 2 people or up to 20 .is an arrangement to agree to cooperate, the
interest and profit will be shared between the partners. This organisation it makes only in the presence of
solicitor and witnesses, like that they will decide how the loss and profit will be shared.
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-private: is the private company with the name LTD, its small business is limited to their shades to have
50 fewer shareholders.
-public company: it’s the company that has trades. The stocks of this type of company belong to members
of general public, as well as pension funds, and the other large investing organisation.
They enjoy benefits of being able to rise considerable amounts of money.
-charities and voluntary organisation: this are non-profit also called the third sector and community
sector.
-global company: is the organisation who does the business in at least one country, and if has success they
will expand to more country((Bompa, Di Pasquale and Cornacchia, 2018.).
-multinational company: is the company who own control production of goods or services in at least one
country .
-joint venture: is the business arrangements between two or more parties agree to the pool. However, the
venture is its own entity separate from the participants.
There are more size of organisation it can be :
Micro Small Medium size Large cooperative
This is very small
enterprise and its
increase being
recognised as a distinct
business class with their
own needs.
The employers are fewer
10 and has annual
turnover or balance sheet
no greater then 2 euro
millionth have limited
consummation of the
energy per year. The
The small businesses are
privately owned that
have few employees
and/or less annual
revenue than regular
sizes corporations. This
name ‘’as small
business’’ is able to
apply for government
support depending of the
country and industry.
It’s has 50 employees.
Is the organisation who
doesn't have more then
500 employees and the
annual turnover is not
more the £100 million.
This type of organisation
is own and controlling
by its self-members and
the organisation. This
business is different
from the other type of
companies because they
are formed and operate
from benefit of their
members. This
organisation is
improving the
bargaining power of the
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benefit is you can start
own business from
home, the revenue is
generally lower than
companies that operate
on large scales.
individual members.
The stakeholders are the: GUVERNAMENT, SUPPLIERS, SHAREHOLDERS, CUSTOMERS,
GENERAL PUBLIC.
Who can affect our business are the uncontrollable forces as:
-political factors
-Economical : 1.primary(agriculture)
2. Secondary ( manufactory)
3. Terficacy (services)
4.New digit (dif software bitcoin)
-social factors: business philosophy: 1 .positivism(data and numbers)+2.interpretivism(emotion gut feel).
-technological
Brexit the different type of company they make decision with the collective behaviour.
What come first? Strategy or Structure?
France Shan
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London marketing Mumbai
Is : -competition within your industry
-bargaining power of suppliers
-barganing power of customers
-friends of substitute
How we make first of course we have to find a good place for our business first comes structure after that
strategy.
Is very important to make sure we are in the good position to make a business. We have to deal with
the reality in a strategic way ,
TASK 2 : Interrelationship of the various functions within an organisation
and how they link to organisational structure.
Sainsbury it making sure as the organisation the consumer to be first. It’s very important to treat our
customers with care and professionalism like that we will keep them as long we can. They act in the best
interest of shareholders, customers and stakeholders. Good organisation tries to accommodate all type of
employees they will not make difference between genres colour etc... Most important thing is they have to
treat genres equally they have reported in the CSR 24% females are managers and 16% store
managers. ...The organization structure of Sainsbury is hierarchical because of a series of levels of people.
For example, senior managers are responsible for the line manager and the line manager is responsible for
sales assistant. As long you care on your employees you have a good quality of services, skills, interest
and profit. As well the employees must be honest and honourable in al dealing with other r other
employees.
Sainsbury is a range of quality products including insurance, credit Cards saving and loans, its combined
the shopping and banking by offering to customers qualitative products at right price, as well they make
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sure to reward them for choosing Sainsbury for their needs. This organisation has large range of products
for different type of religion and cultures. This being an advantage to have more customers from different
cultures and cuisine. Sainsbury has a visible aspect of the cultural organisation, the way are
exposing food displayed on shelves, the colour schemes of walls uniform and different cultural members
of staff its attracting customers.
Theys success is as well because HRM is selecting people based on their skills and knowledge., they
supply better support for employees, giving them the possibility to grow like that employees comes with
new ideas and interest on the job position being benefit of the business. The role is to identify the
potential skills on employees and to focus the performance.
The policies and practices of human resource management must meet with strategy. The integrated
strategic has three-dimension approach to apply this means a relationship between HMR. Actives of
strategic human resources management they can expanded widely, the recruitment and selection include
the application process of applicant's name address, post code, cv, qualification, employment history and
references. The training and development programme in Sainsbury are compulsory to everyone it takes
place during first two days this including the rules health and safety. An introduction to job role
description its takes place during the 12 weeks and include basic required to know how to work
productively in the department.
Sainsbury has gradual opportunities to grow supermarket space. According to the developing plan,
Sainsbury introduced 10 min drive to Sainsbury of 40% UK population. like that the revenue has an
increase including VAT.
We have to approach to CSR in Sainsbury because is very important to recognise the importance and
change this world in better for future generation. Is necessary to analyse the current and the past situation
to reach a point of view on what is happen in the present and what we can do better.
Another organisation structure is the climate change because this problem was changed thinking of the
world, then we have to reduce the energy consumption to improve Sainsbury from 425kg/m2(2006/07) to
421 kgCO2/m2(2007/08).
Our strategic work planning is the process and forecasting the talents organisation they need to achieve
strategic objective. Work force planning is fundamentally a business-focused strategic exercise that is the
best completed. This helps ensure that HR will achieve theirs interest recruiting the wright person on the
wright place.
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Brexit it will affect Sainsbury because it will be hard to procure fresh vegetables from import, same as
many other products. The British farms will increase their prices giving products at duble or triple price.
As well numbers of customers will be reduced because of the poor variety of products.
We anticipate significant risks to maintaining the quality and durability of food that our customers have
come to expect in our store and then will be inevitable pressure on food prices drop higher transport costs.
The governmental established ways of working with the food industry to prevent disruption
TASK 3
Demonstrate both the negative and positive influence and impact the macro environment on the
business operations.
Pestle analyses
Political factor:-
It plays a significant role for determining the impact on the Sainsbury during the Brexit.
Political factor include the term revenue in certain market and country. It involves the policies
which are related to the government and it relates to the intervenes of the government in the
economy. It includes the law of environment, tax policy, trade restrictions, and political stability.
It influences the goods and services with the aim to provide. Positive impact of the political
factor is that when there is stability in the political environment than government may impose the
tax rate and duty which affect the entire revenue which generate the profitability for Sainsbury
and the negative impact of the political factor is the decision of the government affect the
business and economy of the Sainsbury such as when it rates of tax raises than it affect the
financial strategy of the organisation(Bompa, Di Pasquale and Cornacchia, 2018.).
Economic factor:-
Economic factor of the macro environment include so many operations such as it
determine the aggregate demand and investment on economy. It involves saving rates, foreign
exchange rates, inflation rates etc. It related to the service of the consumers and the interventions
of the government in the market. It influences the financial strategy of the Sainsbury because it
includes the conditions of the economy. The negative impact of the economic factor is when it
influences the interest rates which directly impact the cost of capital and extent the growth and
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expand of the Sainsbury. It also affects the exporting of the goods and services and importing of
the products and services which affect the price and supply of economy in the market.
Social factors:-
Social factor of the macro environment includes the population growth rate, culture
aspects, age distributions, attitudes, beliefs and emphasis on the safety etc. From changing of the
taste and preference of the customers impact on the demand of the Sainsbury products and
operations of the company. From changing of the taste and preference of the customers directly
affect the manufacturing and demand of the products in negative manner because its a
opportunity for the Sainsbury to accept the challenges and fulfil the demand and needs of the
customers and the positive impact for the Sainsbury from the social factor is it gives innovative
ideas and creation to manufacture the products in different ways which attract the customers to
buy the products and organisation change the various strategies to adapt the social trends of the
market(Hamilton and Webster, 2018.).
Technological factor:-
It involves the aspects of the research and development of Sainsbury, automation in the
activities, technology incentives and innovation of technology which is helpful for the Sainsbury.
The technological factor determine the minimum level of production, influence the decision of
outsourcing and the level of efficient productions. The positive factor for the Sainsbury of the
technology is it gives new ways to manufacture the products and help the employees to lower the
burden in the company and the negative factor of technology is it consume time to lean and
training about new technologies, affect the cost of the company and it leads to the innovations in
the organisation.
Legal factor:-
Legal factors of the macro environment includes all the types of law such as the
discrimination law, health and safety law, employment law, antitrust law etc. all the laws and
policies are made for the handling the situations of the company. The positive impact of this
factor is it covers the health and safety of the employees of the Sainsbury which provide the
facility of medical benefit for the employees and on the other hand the negative impact of the
legal factor on the Sainsbury is affect the operations of the company and the demand of their
products(Kaur and France, 2018. ).
Environmental factor:-
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The factor of the macro environment involves the aspects of the environment such as
climate, weather and changes in the climate. From the different norms and changes in the
environment and heavy use of resources affect the Sainsbury. Positive impact of the
environmental factor for Sainsbury that it manufacture the eco friendly products which doesn't
harm the environment and negative factor is that unlimited use of resource which destroy the
resources and increase the population.
TASK 4
Micro environment
SWOT Sainsbury
Strength Strength of the Sainsbury is it has the largest
chain of supermarkets in UK.
The leadership team is extremely experienced
in their field.
Sainsbury has excellent advertising and
branding through television, social media and
online campaigns etc(Somerfield, Dashfield
and Warwick, 2018. ).
Weakness The tough competition of Sainsbury within
each and every segment of the retail industry.
Need more investment on the new technologies
which expand the scale and need to put more
money in the technology which integrate the
process across the management.
Opportunity Expanding their supermarkets in different
growing economies such as Africa, Asia etc.
Opportunity to domestics and international
expansion of the supermarkets.
Threat The biggest threat for the Sainsbury is it
increasing the globalisation and it's a challenge
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which is not acceptable by Sainsbury.
Not always serve the best quality products and
financially viable over the world.
The internal strength and weakness of specific business and their interrelationship with external
macro factors.
Strength
Strength of the Sainsbury has excellent branding and advertising of their products which relate to
the technological factor which is accepted by the organisation because from new technologies its
easy to advertising of the products through social media and online where its easy to reach the
customers. It also related to the social factor of the macro environment where Sainsbury receive
the positive and negative feedback about the quality and products. From that it gives ideas to
manufacture the products according to the demand of the customers and also reach the taste and
preference of the consumers through the feedback(Su, Chen and Wang, 2019. ).
Weakness
Investment on the technology related to the economic factor of the macro environment because it
needs strong economic condition to accept the technology changes. From investment on the
technology consume more time and effect the cost of the company such as conducting the
learning and training classes, purchasing cost, lead to innovations etc. it is the biggest weakness
for Sainsbury for having the investment on the technology.
CONCLUSION
Above study concluded that business environment is total sum of all the internal and external
factors which influence the business. Both the factors work together and influence each other to
affect the business. It concluded that the types, size and scope of the organisation and the
interrelationship of the various functions within the organisation and link the structure of the
organisation. It also describes that it demonstrate the positive and negative which influence and
impact the macro environment on the operations of the business and also the strength and
weakness of specific business and their interrelationship with external macro factors(Zahari and
Romli, 2018. ).
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REFERENCE
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Kinetics.
Cai, Q. and et.al., 2018. Integrating macro-and micro-level safety analyses: a Bayesian approach
incorporating spatial interaction. Transportmetrica A: Transport Science, pp.1-22.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kaur, L. and France, A., 2018. Strategic positioning of a supermarket.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management.44. pp.194-203.
Somerfield, P.J., Dashfield, S.L. and Warwick, R.M., 2018. The structure and organisation of
integral marine benthic communities in relation to sieve mesh size. Journal of
Experimental Marine Biology and Ecology. 502. pp.164-173.
Su, Z., Chen, J. and Wang, D., 2019. Organisational structure and managerial innovation: the
mediating effect of cross-functional integration. Technology Analysis & Strategic
Management. 31(3). pp.253-265.
Zahari, A.R. and Romli, F.I., 2018. Analysis of suborbital flight operation using PESTLE.
Journal of Atmospheric and Solar-Terrestrial Physics.
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